Recently Funded Ground-Up Construction Loan In Heath, TX

Loan Scenario:

This ground-up construction project involves the building of a new modern single-family home in Heath, Texas. The first-time builder bought the lot for $295,000 and is now completing a full new build with a total construction budget of $826,100. As a result, American Heritage Lending provided $1,008,990 in construction funding, structured as a True Zero Point Loan. This results in a Loan-to-Cost (LTC) of 90% and a Loan-to-After Construction Value (LTARV) of 52.55%. Once finished, the property is expected to reach an After Construction Value of $1,920,000.

Importantly, this project was funded with no upfront discount points. Because of this, the first-time builder was able to keep more capital available for construction costs while still accessing high-leverage funding. In addition, the loan includes a 12-month interest-only term, which gives the borrower room to focus on project oversight throughout the build. Even though this is their first ground-up project, the loan structure supports a clear scope, timeline, and budget from start to finish.

The project involves a full ground-up build of a modern detached home. First, the scope covers all pre-construction planning, including permits, surveys, and design work. Next, the build moves to concrete slab work and labor. From there, vertical construction includes wood framing, electrical rough-in, HVAC setup, plumbing, and both interior and exterior finish work. Additionally, a backup reserve is built into the budget to allow for changes as the project moves forward.

Heath sits within the broader Rockwall County market, which continues to see demand for new construction as North Texas growth spreads eastward. In particular, limited new-build inventory at higher price points supports strong interest in modern, well-designed homes. As a result, ground-up projects that offer current layouts and finishes are well-positioned to meet buyer needs in this area.

This project shows how American Heritage Lending supports first-time builders through structured ground-up construction funding. By offering a True Zero Point Loan with 90% LTC and a 12-month interest-only term, AHL helps new builders move from land purchase to finished construction without heavy upfront costs. Ultimately, this approach allows builders to stay focused on the work while keeping cash flow intact.